More importantly, Hilton's future looks very promising. No single hotel company enjoys more than 5% market share (in terms of hotel rooms) in the international market and more than 10% market share in the U.S. market. In international and domestic markets, Hilton is right at the top with a 5% share in the global market, ahead of InterContinental Hotels Group (IHG_), and a 10% share in the U.S. market, ahead of Marriott International (MAR_).
Since Hilton holds the largest market share, it could benefit the most from the recovery in the hotels and lodgings market. The hotel industry, which reported a 6.8% increase in revenue per available room last year, expects a 5.7% improvement this year and 6% in 2014. The growth in the demand for rooms continues to outpace the supply and this trend will likely continue through at least 2015. That would translate into further improvement in Hilton's earnings.